Interest on top of limit?

Chris123643

When you have maxed out your £3600 for the year, and you have selected you want your interest to go into your ISA, does that get added ontop (thus going over your limit in affect) or do you then have to swap where your interest goes (say your current account)

Also just to clarify i have this right, after April (if i have the cash) can i put in another £3600 on top into my ISA, making £7200 tax free savings?

Im about to set up an ISA with HSBC and couldn't find the answer to those question

Thanks in advance

Chris

Ian_W

Chris123643 wrote: »

When you have maxed out your £3600 for the year, and you have selected you want your interest to go into your ISA, does that get added ontop (thus going over your limit in affect) or do you then have to swap where your interest goes (say your current account)

Also just to clarify i have this right, after April (if i have the cash) can i put in another £3600 on top into my ISA, making £7200 tax free savings?

Im about to set up an ISA with HSBC and couldn't find the answer to those question

Thanks in advance

Chris

The limit is on CONTRIBUTIONS you can make per tax year, interest or investment growth within the ISA doesn't affect how much you can pay into it each year. There is no limit on how much it can grow by.
Unless you need or want the interest paid to you then leave it in the ISA and let "the miracle" of compounding do its stuff.
Your second question is correct - £3600 can be contributed to a cash ISA each tax year.